US dollar: forecast for June 15-21

Strong labor market data released last week became a bullish signal for the US dollar, but the initial market reaction has been muted. Overall, the figures confirm the consumer activity recovering in Q2 and increase the Fed’s rate hike expectations in the year 2015.

Next week the market attention will be glued to the Federal Reserve policy meeting results on Wednesday, June 17. The Fed will also release renewed economic projections and hold a press-conference. We expects rates to be left unchanged in June, but the Fed could give clear comments on its policy intentions amid the improved economic outlook.

What’s more, on the new week pay attention to the industrial production, inflation and housing market data. Nearly all the forecasts are upbeat, so we expect the US dollar growth to accelerate.